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Apple Is the New Pimco

bloomberg.com

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Re: Apple Is the New Pimco

#11

Post by twoodfin »

oceanstone wrote: post #10

> Apple, Oracle, Google Inc. and seven of their biggest peers now have in excess of $500 billion of cash and marketable securities, up more than three-fold since 2008, according to data compiled by Bloomberg. The problem is much of it is stuck overseas. Stuck overseas in the sense that these corporations aren't willing to pay American taxes [1], insisting on using complex tax loopholes that essentially leave the bill…

Stuck overseas in the sense that corporations aren't willing to pay American taxes...

Why should Apple pay American taxes on the profits from a product manufactured in China and sold in Germany? (Albeit "Designed in California"!)

Re: Apple Is the New Pimco

#12

Post by jalonso510 »

On the other side of things, Apple has issued about $39 billion of its own bonds over the last couple years. A lot of it is longer term (30 years), but for the comparable bonds with 1-3 year maturities, they're only paying about 1.0% or a little under. It's not a huge difference vs the 1.06% + 0.2% quoted in the article, but they are making some money just by the fact that they have great credit and can borrow at a slightly better rate than they can receive on these comparable bonds.

Re: Apple Is the New Pimco

#13

Post by rayiner »

twoodfin wrote: post #11
oceanstone wrote: post #10

> Apple, Oracle, Google Inc. and seven of their biggest peers now have in excess of $500 billion of cash and marketable securities, up more than three-fold since 2008, according to data compiled by Bloomberg. The problem is much of it is stuck overseas. Stuck overseas in the sense that these corporations aren't willing to pay American taxes [1], insisting on using complex tax loopholes that essentially leave the bill…

Stuck overseas in the sense that corporations aren't willing to pay American taxes... Why should Apple pay American taxes on the profits from a product manufactured in China and sold in Germany? (Albeit "Designed in California"!)

I think you answered your own question.

Re: Apple Is the New Pimco

#15

Post by return0 »

traskjd wrote: post #9
return0 wrote: post #3

Where do these companies keep the rest of their cash?

Braeburn Capital (awesome name IMO) - http://en.wikipedia.org/wiki/Braeburn_Capital

OK then where does braeburn keep its cash, in banks? Afaik, you practically lose money by keeping it in banks.

Re: Apple Is the New Pimco

#16

Post by IBM »

twoodfin wrote: post #11
oceanstone wrote: post #10

> Apple, Oracle, Google Inc. and seven of their biggest peers now have in excess of $500 billion of cash and marketable securities, up more than three-fold since 2008, according to data compiled by Bloomberg. The problem is much of it is stuck overseas. Stuck overseas in the sense that these corporations aren't willing to pay American taxes [1], insisting on using complex tax loopholes that essentially leave the bill…

Stuck overseas in the sense that corporations aren't willing to pay American taxes... Why should Apple pay American taxes on the profits from a product manufactured in China and sold in Germany? (Albeit "Designed in California"!)

The answer is they shouldn't and the U.S. needs to get a territorial tax system as soon as possible.

Re: Apple Is the New Pimco

#17

Post by [deleted] »

twoodfin wrote: post #11
oceanstone wrote: post #10

> Apple, Oracle, Google Inc. and seven of their biggest peers now have in excess of $500 billion of cash and marketable securities, up more than three-fold since 2008, according to data compiled by Bloomberg. The problem is much of it is stuck overseas. Stuck overseas in the sense that these corporations aren't willing to pay American taxes [1], insisting on using complex tax loopholes that essentially leave the bill…

Stuck overseas in the sense that corporations aren't willing to pay American taxes... Why should Apple pay American taxes on the profits from a product manufactured in China and sold in Germany? (Albeit "Designed in California"!)

[deleted]

Re: Apple Is the New Pimco

#18

Post by rconti »

rayiner wrote: post #13
twoodfin wrote: post #11

Earlier quoted context omitted.

Stuck overseas in the sense that corporations aren't willing to pay American taxes... Why should Apple pay American taxes on the profits from a product manufactured in China and sold in Germany? (Albeit "Designed in California"!)

I think you answered your own question.

Is it a moral imperative in your opinion? Is it based on what other countries do? (hint: no)

IMO, it is non-obvious that they are obligated to do so.

Re: Apple Is the New Pimco

#19

Post by sbov »

twoodfin wrote: post #11
oceanstone wrote: post #10

> Apple, Oracle, Google Inc. and seven of their biggest peers now have in excess of $500 billion of cash and marketable securities, up more than three-fold since 2008, according to data compiled by Bloomberg. The problem is much of it is stuck overseas. Stuck overseas in the sense that these corporations aren't willing to pay American taxes [1], insisting on using complex tax loopholes that essentially leave the bill…

Stuck overseas in the sense that corporations aren't willing to pay American taxes... Why should Apple pay American taxes on the profits from a product manufactured in China and sold in Germany? (Albeit "Designed in California"!)

Why should Apple be able to pay Irish taxes on a product designed in California, manufactured in China, and sold in Germany.

It makes even less sense.

Re: Apple Is the New Pimco

#20

Post by Alphasite_ »

sbov wrote: post #19
twoodfin wrote: post #11

Earlier quoted context omitted.

Stuck overseas in the sense that corporations aren't willing to pay American taxes... Why should Apple pay American taxes on the profits from a product manufactured in China and sold in Germany? (Albeit "Designed in California"!)

Why should Apple be able to pay Irish taxes on a product designed in California, manufactured in China, and sold in Germany. It makes even less sense.

Which is why these countries are changing the laws, see Google tax in the UK.
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